ECI Delists 345 Registered Unrecognised Political Parties (RUPPs)

Main Takeaway: To clean up the political space and prevent misuse of tax benefits, the Election Commission of India (ECI) has initiated proceedings to delist 345 RUPPs that have neither contested any election since 2019 nor maintained functional offices, exercising its powers under Article 324 of the Constitution, Section 29A of the Representation of the People Act, 1951, and Section 13A of the Income Tax Act, 1961.

Background and Rationale

Registered Unrecognised Political Parties (RUPPs) are associations registered with the ECI under Section 29A of the Representation of the People Act, 1951. While they lack state or national recognition, RUPPs enjoy privileges such as:

• Tax exemption under Section 13A of the Income Tax Act, 1961
• Allotment of common poll symbols
• Nomination of up to 20 star campaigners during elections

However, many RUPPs have become “shell entities,” exploiting these benefits without genuine political participation. The ECI’s nationwide review found that out of over 2,800 RUPPs, 345 have:

• Not contested any Lok Sabha, State Assembly, or by-elections since 2019
• Failed to maintain a physical office at their registered address
• Neglected statutory filings (annual audit accounts, contribution reports)

This prompted the ECI to begin delisting these inactive entities to uphold electoral integrity and close avenues for financial irregularities.

Legal Framework

1. Constitutional Authority (Article 324):
   Empowers the ECI with superintendence, direction, and control over elections across India.
2. Representation of the People Act, 1951 (Section 29A):
   Governs registration criteria for political parties. While it mandates conditions to remain registered, explicit de-registration powers are lacking. Hence, the ECI can only delist (withdraw privileges) or declare inactive, not fully de-register entities.
3. Income Tax Act, 1961 (Section 13A):
   Grants RUPPs 100 percent exemption on income from voluntary contributions, house property, capital gains, etc., subject to conditions like audited accounts and disclosure of donations above ₹20,000. Non-compliance leads to loss of exemption.

Delisting Process

• Identification: Nationwide exercise to pinpoint RUPPs violating participation and compliance norms.
• Show-Cause Notices: CEOs of respective States/UTs issue notices, allowing parties to present their case.
• Hearings & Recommendations: Parties receive hearings before State CEOs; reports forwarded to the ECI.
• Final Decision: The ECI, chaired by CEC Shri Gyanesh Kumar, makes the final call on delisting.

Implications

• Loss of Tax Exemption: Delisted RUPPs will no longer enjoy Section 13A benefits, dissuading misuse of political donations.
• Symbol & Campaign Privileges: Withdrawal of common symbol allotment and star campaigner privileges.
• Electoral Clean-up: Strengthens the credibility of political party registers, ensuring active entities only.

Looking Ahead

This exercise marks the first phase of the ECI’s clean-up drive. Further batches of defaulting RUPPs may face delisting, signaling a sustained effort to reinforce compliance and curb financial and electoral malpractices.

References

1. ECI delisting notification, PIB .
2. Supreme Court on ECI powers, Indian National Congress vs Institute of Social Welfare (2002).